Governor Baker Signs FY17 Budget Including CPA Funding

Governor Baker signs the FY2017 BudgetJuly 21, 2016: Earlier this month, Governor Charlie Baker signed the fiscal year 2017 budget, including the transfer of $10 million from the state budget surplus to the CPA Trust Fund. This marks the fourth year in a row that the state budget has included a transfer for the CPA Trust Fund.

What does this mean for the CPA Trust Fund distribution?

There are still many factors that will determine how this funding will affect the percentage match CPA communities will receive this coming November 15th. While it is great news that CPA funding has been included in the state budget, this funding is entirely dependent on there being a state budget surplus this year. The CPA Trust Fund has received $46.4 million in funding from the state budget since 2013, but state tax collections have flagged in recent months, and the state is now attempting to balance the books on a shortfall that some estimate could approach, or even exceed, $750 million. 

We also don't know what the coming months will bring for collections for CPA at the state's Registries of Deeds.  However, the real estate market has shown a positive trend in recent months and CPA revenues have increased year-over-year in six of the last seven months at the Registries.

Special thanks to...

We are extremely grateful for the support of the six members of the budget Conference Committee, including House Committee on Ways and Means Chair Brian Dempsey, Senate Ways and Means Chair Karen Spilka, and long time CPA champion Representative Stephen Kulik.

Here's the CPA language included in the budget:

SECTION 159.   Notwithstanding any general or special law to the contrary, prior to transferring the consolidated net surplus in the budgetary funds to the Commonwealth Stabilization Fund pursuant to section 5C of chapter 29 of the General Laws, the comptroller shall dispose of the consolidated net surplus in the budgetary funds for fiscal year 2016 as follows: (i) transfer 1/2 of the surplus, not to exceed $10,000,000, to the Massachusetts Life Sciences Investment Fund established in section 6 of chapter 23I of the General Laws; and (ii) transfer 1/2 of the surplus, not to exceed $10,000,000, to the Massachusetts Community Preservation Trust Fund established in section 9 of chapter 44B of the General Laws.

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